> Draft Finance Bill 2012: Research & Development – Government listens to the new way of working

Draft Finance Bill 2012: Research & Development – Government listens to the new way of working

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Chris Sanger, Head of Tax Policy at EY commented: “In the draft Finance Bill issued today, the Treasury showed that it is beginning to truly understand the way that R&D is undertaken in this country. The proposals enable much more of the R&D undertaken through external specialists to qualify for the high profile R&D tax incentive. This has long been a thorn in the side of UK companies, seeking to undertake R&D in the most effective manner.”

Frank Buffone, Head of R&D Tax at EY, said: “This will be a great fillip for the industry and will provide a much needed impetus at this delicate time for the economy. It should also significantly simplify the administration, which can act as a deterrent to claiming and thereby frustrate the positive impact of the incentive.

“Today’s confirmation of the increased tax relief rate, as well as the removal of the £10,000 minimum and the link to UK employees, will be especially useful for Small and Medium sized companies.”

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.